Potential Rental Property Analysis

[Account Closed]

I submitted an offer on a property in the low 60's; it is a short sale and the listing agent came back and said the bank has approved a sale price between 76-90k.  So 76k is the bottom line I guess.  She said they have had multiple offers in the 60's already, so I am guessing other investors see the value in the property and my initial offer was good.  The property is in a B area, with C schools, its 3 bed 1.5 bath, 1200 sqft, 2 story, garage, no basement, it is in need of some moderate rehab (exterior wood repair, garage door, flooring, paint, bathroom tile, roof sooner than later, etc)

If I were to buy at 76k that drops my ROI by about 4% a year. Here are what the numbers look like at 76k:

Purchase Price: $76,000

20% Down Payment: $15,200 

Closing costs: $4,000 (estimate)

Rehab Costs: $11,500 (could be less)

Mortgage Payment: $300

Gross Monthly Rent: $1250 

Cash Flow: $325 (using 50% rule).

ROI: (325*12) / (15,200+4000+11,500) = 12.7%

Zillow says the property is worth 130k, I am getting comps pulled as well.

Just wanted to get some opinions on this, its getting harder and harder to find deals out there that are in good areas.  It would also be nice to lock in some low interest debt before rates inevitably rise.  

Wondering if I just have to bite the bullet and pay more or keep hunting.  Thanks for your time.